ISSN: 2222-6990
Open access
The purpose of this paper is to study the method of profit-taking from the perspective of maqasid al-Shariah (objectives of Islamic law). Then, this study will analyse the practice of profit-taking in Islamic housing financing products based on bay’ bithaman ajil (BBA) and tawarruq munazzam contracts in selected banks. This study is important to implement is to manage the perception of Islamic banking customers on the issue of ceiling and floating rates. The methodology of this study is qualitative, where the data is collected through library research and field study. Library research is done by examining fiqh muamalat books, related articles, and circulars. Meanwhile, the field study was conducted in an unstructured interview method with two Shariah officers from two banks offering Islamic housing financing products based on BBA and tawarruq munazzam contracts. The results show that the imposition of two rates in Islamic housing financing based on BBA and tawarruq munazzam contracts has led to confusion in the community. Indirectly, it has given rise to a negative perception of Islamic banking which imposes high and oppressive prices. Also, there are some records from the court cases as well as the weakness of the bank's SOP (standard operating procedure) in giving rebates that led to the endless public's negative perception of Islamic banking. However, Malaysian National Bank has implemented some crucial initiatives to curb confusion by requiring Islamic banks to include ibra’ (rebate) clauses and complete calculations into contracts which were previously applied at the discretion of the bank. Thus, this study suggests the imposition of ceiling prices to be improved based on the amortisation formula in accordance with the concepts of maqasid al-Shariah, wasatiyyah and ihsan, so that the perception of society can be managed well. This study has a limit that only focuses on the practice of taking profit on two Islamic housing financing products and obtaining field data from two respondents and two banks. For future study, it is suggested for researcher to focus on public’s perspectives and their perceptions of profit-taking by Islamic banks.
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In-Text Citation: (Asni et al., 2021)
To Cite this Article: Asni, F., Mahamud, M. A., & Sulong, J. (2021). Management of Community Perception Issues to Ceiling and Floating Rates on Islamic Home Financing Based on Maqasid Shariah Concept. International Journal of Academic Research in Business and Social Sciences, 11(7), 100–109.
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